The so-called “VP Klassik 70 Benchmark Index”, which represents an investment in a basket made up of shares, bonds and the commodity gold as well as a cash component, forms the basis for the performance of the HVB Interest Garant Anleihe 9/2023. International share indices (target weighting: 50 percent), exchange-traded funds based on German and American government bonds (target weighting: 47 percent) and gold (target weighting: 3 percent) are included. The composition is adjusted to the target weighting every three months. The bond is linked to an innovative guarantee system which determines the weighting of the basket and the cash component in the Index, thereby ensuring 100 percent capital security.
Christian Noisternig, Area Head Private Customers, Small Business and Independent Professions at UniCredit Bank Austria, emphasised: “With our new Interest Garant Anleihe on the ‘VP Klassik 70 Benchmark Index’ we offer investors interesting investment opportunities in these times of low interest rates. In the first 5 years the bond produces guaranteed interest payments of 0.55 percent p. a. At the end of the term it is possible to participate at a level of 50 percent in the positive performance in the attractive Index. The Interest Garant Anleihe also offers 100 percent capital security on maturity and will therefore be certainly welcomed by security-oriented investors.”
The new Interest Garant Anleihe offers interesting investment opportunities in the medium-term maturity segment. The objective of the Index is to allow investors to participate in the performance of the basket with risk optimisation. The risk for investors will therefore be reduced in highly fluctuating market situations.
Thanks to the broad investment approach, the “VP Klassik 70 Benchmark Index” can participate in the development of the different investment classes. Depending on the current weighting of the basket and the cash component, the performance of the individual investment classes may have both a positive and a negative impact on the performance of the Index. In principle, the weighting of the basket elements or the cash component may each lie between 0 and 100 percent. The total participation quota (basket and/or cash component) is therefore always 100 percent.
The closing price (reference price) of the Index (underlying instrument) is calculated on the first valuation day, i.e. 22 September 2017. The base price (100 percent of the reference price) is calculated from this. In the first 5 years of the life of the new bond, the investors will receive an interest payment amounting to 0.55 per cent p.a., related to the nominal amount, on the respective interest payment date. At the end of the term after 6 years, the nominal amount plus 50 per cent of the positive performance of the underlying instrument, related to the nominal amount, is repaid if the underlying instrument has developed positively.
The “VP Klassik 70 Benchmark Index” is calculated in Euro by UniCredit Bank AG (formerly Bayerische Hypo- und Vereinsbank AG – index sponsor and calculation agent).
In the event the performance of the underlying share index is negative, the bond has a capital security guarantee of 100 percent at the end of the term. This means that the bond will be paid back at least at the nominal amount of EUR 1,000 per bond. The capital is invested for a total of 6 years, during which time the bond can be sold under normal market conditions at its current price.
The issue in detail:
Interest Garant Anleihe bond 9/2023 based on the “VP Klassik 70 Benchmark Index” of UniCredit Bank AG
Issuer: UniCredit Bank AG
Underlying instrument: VP Klassik 70 Benchmark Index
Start of offer: 7 August 2017 to 22 September 2017 (2:00 pm), subject to early closure
Redemption: 26 September 2023
Issue price: 101.5% (incl. 1.5% front-end load from UniCredit Bank Austria AG)
Denomination: EUR 1,000
Valuation dates: initial: 22 September 2017, final: 19 September 2023
Interest rate p.a.: 0.55% related to the nominal amount
Interest payment dates: 26 September 2018 (1), 26 September 2019 (2), 28 September 2020 (3), 27 September 2021 (4), 26 September 2022 (5)
Participation factor: 50% in the positive performance of the underlying instrument
Stock market listing: Expected to be from 26 September 2017, Frankfurt (Open Market), Stuttgart (Open Market)
Fees and charges: Custodial fee: annually 0.235% + 20% VAT on the market value, at least EUR 3.92 annually + 20% VAT per securities position; but at least EUR 26.28 + 20% VAT per securities account.
Selling fees: 0.9% of the sale value, but at least EUR 86
This information regarding the HVB Interest Garant Anleihe bond 9/2023 based on the “VP Klassik 70 Benchmark Index” is provided solely for advertising purposes and does not constitute investment advice, an investment recommendation, a product recommendation, or an offer or solicitation to buy or sell this bond, or a solicitation to make an offer. It is intended solely as introductory information and is not a substitute for advice provided on the basis of the investor’s individual circumstances and knowledge. Every capital investment involves a certain degree of risk. The value of the investment and the amount of investment income may be subject to sudden and significant fluctuations during the term of investment, and for this reason they cannot be guaranteed. It is possible that the investor may not recover the entire amount of the initial investment.
Enquiries: UniCredit Bank Austria Media Relations
Matthias Raftl, Tel.: +43 (0) 5 05 05-52809;